ADB Approves $434.25 Million Loan for Renewable Energy Projects in Assam
The project will aid in developing 3 GW of solar energy capacity
October 25, 2024
The Asian Development Bank (ADB) has approved a $434.25 million loan to increase renewable energy capacity and improve energy security in Assam.
The Assam Solar Project will construct a 500 MW grid-connected solar photovoltaic facility in Karbi Anglong district. The project will also support the development of a battery energy storage system to ensure grid stability and meet peak power demand.
This storage system will be established through a joint venture between the Assam Power Distribution Company (APDCL) and the Oil and Natural Gas Corporation Tripura Power Company.
ADB will help attract private sector investment in renewable energy by strengthening the state’s public-private partnership (PPP) framework and building its capacity to develop and manage renewable energy PPP projects.
It will also help establish a PPP agreement to develop an additional 250 MW solar facility in the Karbi Anglong district.
The project will improve the distribution of electricity around the solar facility and neighboring rural areas by replacing overhead power distribution lines with aerial-covered conductor cables and installing new distribution transformers.
ADB Principal Energy Specialist Jiwan Acharya said this project will help Assam develop a renewable energy roadmap and increase its solar energy capacity to achieve its target of 3,000 MW by 2030.
ADB will also provide a $1 million technical assistance grant from its Clean Energy Fund under the Clean Energy Financing Partnership Facility to support project implementation, awareness-raising, and capacity building of the APDCL and surrounding communities.
In July 2024, ENGIE group signed a loan agreement with ADB for a 400 MW solar photovoltaic power project in Surendranagar District, Gujarat.
In the same month, ADB approved loans of $240.5 million to finance rooftop solar systems in India. The financing will be provided to the State Bank of India and the National Bank for Agriculture and Rural Development to offer loans to developers and end-users for installing rooftop solar systems.
